Manulife Financial Corporation announces results of Conversion Privilege of Non-cumulative Rate Reset Class 1 Shares Series 17

Rhea-AI Summary

Manulife Financial announced that holders of Series 17 Preferred Shares cannot convert to Series 18 Preferred Shares due to insufficient conversion elections. Only 6,650 shares were elected for conversion, below the required minimum of one million shares.

After December 19, 2024, Series 17 Preferred Share holders will receive fixed rate non-cumulative preferential cash dividends quarterly, subject to Board declaration. The dividend rate for December 20, 2024 to December 19, 2029 will be 5.54200% per annum or $0.346375 per share per quarter, based on the five-year Government of Canada bond yield plus 2.36%.

Manulife may redeem the Series 17 Preferred Shares, wholly or partially, on December 19, 2029 and every five years thereafter, subject to conditions.

Positive

• New fixed dividend rate of 5.54200% per annum established for Series 17 Preferred Shares

Negative

• Insufficient shareholder interest in converting Series 17 to Series 18 Preferred Shares (only 6,650 shares elected vs. 1 million minimum required)

Insights

Financial Analyst

This is a routine announcement regarding preferred shares conversion privilege that has minimal market impact. The key points are:

1. Not enough Series 17 Preferred shareholders elected to convert their shares to Series 18 (only 6,650 shares vs. required 1 million minimum)

2. The dividend rate for Series 17 Preferred shares is set at 5.542% annually ($0.346375 per share quarterly) for the next 5-year period from Dec 20, 2024 to Dec 19, 2029

3. The new rate is based on the 5-year Government of Canada bond yield plus 2.36% spread

While this provides clarity on the preferred shares' dividend structure, it's a standard administrative announcement that doesn't materially impact Manulife's overall financial position or common shareholders.

C$ unless otherwise stated                    TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, Dec. 5, 2024 /PRNewswire/ - Manulife Financial Corporation ("Manulife") today announced that after having taken into account all election notices received by the December 4, 2024 deadline for conversion of its currently outstanding 14,000,000 Non-cumulative Rate Reset Class 1 Shares Series 17 (the "Series 17 Preferred Shares") (TSX: MFC.PR.M) into Non-cumulative Floating Rate Class 1 Shares Series 18 of Manulife (the "Series 18 Preferred Shares"), the holders of Series 17 Preferred Shares are not entitled to convert their Series 17 Preferred Shares into Series 18 Preferred Shares. There were 6,650 Series 17 Preferred Shares elected for conversion, which is less than the minimum one million shares required to give effect to conversions into Series 18 Preferred Shares.

As announced by Manulife on November 20, 2024, after December 19, 2024, holders of Series 17 Preferred Shares will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Manulife and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on December 20, 2024, and ending on December 19, 2029, will be 5.54200% per annum or $0.346375 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at November 20, 2024, plus 2.36%, as determined in accordance with the terms of the Series 17 Preferred Shares.

Subject to certain conditions described in the prospectus supplement dated August 11, 2014 relating to the issuance of the Series 17 Preferred Shares, Manulife may redeem the Series 17 Preferred Shares, in whole or in part, on December 19, 2029 and on December 19 every five years thereafter.

The Series 17 Preferred Shares have not been and will not be registered in the United States under the United States Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation to buy securities in the United States and any public offering of the securities in the United States must be made by means of a prospectus.

About Manulife

Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges, and under '945' in Hong Kong.

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/manulife-financial-corporation-announces-results-of-conversion-privilege-of-non-cumulative-rate-reset-class-1-shares-series-17-302323625.html

SOURCE Manulife Financial Corporation

FAQ

What is the new dividend rate for Manulife's (MFC) Series 17 Preferred Shares?

The new dividend rate is 5.54200% per annum or $0.346375 per share per quarter, effective from December 20, 2024 to December 19, 2029.

When can Manulife (MFC) redeem the Series 17 Preferred Shares?

Manulife can redeem the Series 17 Preferred Shares on December 19, 2029, and every five years thereafter, subject to certain conditions.

Why was the conversion of Manulife's (MFC) Series 17 to Series 18 Preferred Shares not executed?

The conversion was not executed because only 6,650 Series 17 Preferred Shares were elected for conversion, which is below the minimum requirement of one million shares.